Shin Corp brought legal proceedings against Supinya and four Thai Post journalists for an article published in 2003 which quoted her as saying Shin Corps profits had soared because of favorable government policies.

In a case that is widely seen as a key test of freedom of expression in Thailand, the court ruled that Supinyas comments had been made without malice, and dismissed all the charges against her and the Thai Post journalists.

The first defendant [Supinya] made her comments with good faith and honesty, and did not intend to defame the plaintiff  or to tarnish its reputation, create hatred or insult the plaintiff, but rather, out of public interest. Therefore, the first defendant is not guilty, the court said.

The judge added that the Thai Post journalists had simply reported Supinyas comments and were therefore also acquitted.

The court said that Shin Corp, whose business interests lie in telecommunications and broadcasting frequencies, considered a national resource under the Constitution, should be open to criticism.

As the judge read out the verdict, which brings closure to the case that Shin Corp filed more than two years ago, dozens of Supinyas supporters cheered.

I am very happy, said Supinya. This is a great verdict, not just for me but for press freedom in Thailand.

I have always pointed out that the government had a conflict of interests, and the court has proven that to be true today.

Supinya and the Thai Post had refused an offer by Shin Court to settle out of court last month. Roby Alampay, executive director of the South East Asian Press Alliance, said yesterdays court decision vindicated that decision.

We have all tried to encourage Supinya not to compromise, and it was important today for the court itself to assert its independence and lay down important principles, Alampay said.

Supinya said she had not decided whether to countersue Shin Corp.

My feeling is that I would not want to go through legal proceedings again, but I havent decided yet. I have to wait and discuss my options to make sure I make the best decision.

Shin Corps lead lawyer, Somporn Pongsuwan, left the courtroom after making another failed attempt to settle out of court with the defendants before the judge read out the courts verdict, and was unavailable for comment.

Free press advocates said the acquittals showed that the judiciary remained neutral  despite persistent attempts by the Thaksin administration to undermine its independence.

However, media advocates said the battle for press freedom in Thailand is not over, and warned that the ruling may not deter politicians from taking out defamation suits against their critics.

Other observers said the verdict would put further pressure on the embattled caretaker prime minister, who is fighting to save his political career after weeks of street demonstrations calling for his resignation.

This is another blow to Thaksin, said Senator Nirun Phitakwatchara, who posted bail for Supinya in 2004, in reference to accusations of corruption being made against the former telecoms tycoon that were sparked by the sale by his family of their Shin Corp shares to Singapores Temasek Holdings.

Free press advocates from around the world said the yesterdays verdict would give hope to others in the region.

We tend to look westward to Thailand as a role model, and todays verdict has sent a clear message to Cambodia and others in the region that courts can speak out independently [of governments] and defend the important right of freedom of expression, Ou Virak, general-secretary of the Cambodia-based Alliance for Freedom of Expression, said outside the court yesterday.